DR1 Daily News - Tuesday, 12 June 2018

Inflation steady
Migration Department hits Puerto Plata
Political Parties Bill meeting delayed yet again
Notifications sent to Odebrecht accused
Details of case against Víctor Díaz Rúa
Chu Vasquez received RD$2 million from Odebrecht, says Attorney General Office
Constitutional Court to hear case that would allow Danilo Medina to stand again for reelection
Leonel Fernandez throws his hat in the ring
ABC News features update on the story on Trump investments in Cap Cana
Another accident on Sosua-Cabarete road
Dominican History Academy seminar on Puerto Plata

Inflation steady
The Central Bank has announced that the Consumer Price Index (IPC) for the month of May 2018 registered an increase of 0.26% over April’s rate with an accumulated inflation for the period January to May of 1.22%.

Over the last 12 months inflation of the IPC stands at 2.7% but this does not include volatile farm prices, alcohol and tobacco products, fuel and transport. The Central Bank reasons that excluding these items offers a clearer estimate of the effect of the monetary policy on inflation.

Annual inflation overall from May 2017 to May 2018 is at 4.47% that is within the goal of 4.0%± 1.0% established in the Monetary Program for the year.

The key drivers for May inflation were transport (up by 0.86%) due to fuel price increases, and housing (up to 1.17%), counteracted by the food and non-alcoholic beverages, which saw a decrease of -0.25%.

Migration Department hits Puerto Plata
The Migration Agency carried out a wide-ranging series of raids over three days in different municipalities and sectors of the province of Puerto Plata. During the operation 511 foreigners were detained in Altamira, Guananico, La Isabela, Luperón, Sosúa and other sectors.

The operation, which began at dawn on Wednesday 6 June 2018, lasted 72 hours. Migration Agency agents and inspectors, members of the Northern Command of the Dominican Air Force, National Police and representatives of the Public Prosecution Service participated in the operation.

Following verification of the immigration status, 367 foreigners were taken to the border at Dajabon to be deported to Haiti, three were sent to the National Police in possession of homemade arms and drugs, and another two were sent to the Migration investigation department.

Political Parties Bill meeting delayed yet again
The meeting of the special committee of the Chamber of Deputies which is studying the proposed Political Parties Law that was scheduled for 3pm yesterday, Monday 11 June 2018, was suspended, for reasons not yet disclosed. The suspension was announced through a brief communique sent by the Chamber’s press unit which is not the usual method of such announcements.

Notifications sent to Odebrecht accused
Supreme Court judge, Francisco Ortega Polanco, has begun the process of notifying those who have been accused of being involved in the Odebrecht bribe scandal in the documentation presented by the Attorney General’s office.

The document, with the accusations is 518 pages long and asks for the trial to be opened of those accused. In addition it has 1,700 pieces of documentary evidence, material and witness statements who will have to be notified.

The first to be notified was Andrés Bautista of the Modern Revolutionary Party and it was made at the head office of the opposition party.

Ángel Rondón, Víctor Díaz Rúa, Conrado Pittaluga, Andrés Bautista García, Tommy Galán, Roberto Rodríguez and Jesús Vásquez Martínez, will also be notified so that they and their lawyers can prepare their defense.

The file from the Specialized Prosecution service for the Persecution of Administrative Corruption has 1, 368 pieces of documentary evidence, 54 statements and nine interrogations. During the investigation more than 400 individuals and companies were investigated and more than 800,000 financial transactions reviewed.

In addition, all of the heads of public institutions who contracted Odebrecht were interviewed as well as those who stamped and signed documents including ministers, ex ministers, senators and deputies and Title deeds for over 500 properties belong to these people or companies were checked.

Details of case against Víctor Díaz Rúa
The Public Prosecution Service is accusing Víctor Díaz Rúa, former minister of Public Works and former director of the National Potable Water Aqueduct Institute (INAPA) of receiving millions in alleged bribes from Odebrecht, the Brazilian construction company for public works in the Dominican Republic.

Included in the formal accusation presented by the public ministry is US$856,804, as a bribe from Odebrecht, via the companies of Ángel Rondón Rijo. According to the accusation presented by Attorney General Jean Alain Rodríguez to the Supreme Court, the companies Lashan Corp and Consultants and Contractors Conamsa, transferred to Días Rúa and his son-in-law Leonardo Guzmán Font-Bernard US$856,804.83 between the years 2011 and 2013.

In addition to the US$856,804 transfer, the file says that Díaz also received transfers for US$6,629,080 for the Coral highway, and US$4 million deposit at the Antigua Overseas Bank. The transfers are linked to the cost of the aqueducts built in the northwest, Samaná and Hermanas Mirabal, in addition to the contracting of the Coral Highway, Duarte 1 Corridor, El Rio-Jarabacoa road , Casabito road and Duarte Corridor II.

The accusation against the former Minister of Public Works also mentions that he would have purchased a US$5 million yacht with the bribes money, among other expensive real estate and assets. The yacht was named “Balbie”, the name of his wife. The 60-foot yacht is registered in the British Virgin Islands as part of the shelf company Nutberry Limited.

Chu Vasquez received RD$2 million from Odebrecht, says Attorney General Office
Former senator and secretary general of the Modern Revolutionary Party (PRM), Jesús (Chú) Vásquez Martinez (Chu) had received between 2007 and 2009 RD$2,169,000 in bribes from Odebrecht. Vásquez served as senator from 1994 to 2010 for the PRD opposition party, and was president of the Senate from 2003 to 2004 for the same PRD party. He joined the PRM when this split from the PRD. The PRD would become a major ally of the Medina administration.

The RD$2,169,000 alleged bribe total is mentioned in the formal accusation presented by the Attorney General Office to the Supreme Court of Justice on 7 June 2018. The accusation says that Vásquez received the bribes from Arma, S.A., a company where commercial representative of Odebrecht, Angel Rondón, is listed as general manager.

According to the case filed by the Attorney General, the bribes were received as follows:
a) Check No. 0000048, dated 3 October 2007, in the name of his wife, Deonicia Marte Almonte, for RD$619,000; Check No.0000229 for 15 March 2009, dated 15 March 2009, in the name of his son Jesús Stalin Vásquez Marte, for RD$500,000; Check No.0000280, dated 20 April 2009, in his name (Jesús Antonio Vásquez Martínez) for RD$1,050,000, for a total RD$2,169,000.

Constitutional Court to hear case that would allow Danilo Medina to stand again for reelection
On Monday 11 June 2018, the Constitutional Court had a public audience to hear the case in which lawyer Fredermiro Ferreras Díaz requested a Constitutional Court hearing and judgement on the interpretation in the Constitution that bans President Danilo Medina from being reelected.

Although Díaz subsequently withdrew his suit, the case is continuing with the participation of
José Sánchez Lebrón, Gregorio Cabrera, representing the Citizen’s Alliance for the Defense of Fundamental Rights, as well as Leidy Manuel Capellán and José Martínez Brito.

The court has allowed a time period of six days for arguments to be heard, following which the Constitutional Court is giving itself four months to make its ruling.

Leonel Fernandez throws his hat in the ring
It was expected that former President Leonel Fernández Reyna, who is the president of the ruling PLD party, would officially announce his presidential campaign during the event planned for 26 August 2018 in the Felix Sánchez Olympic Stadium. But on Sunday, 10 June 2018, he surprised everyone by taking part in a two-hour cavalcade through the streets of Santo Domingo.

Also taking part in the cavalcade were former Vice President Rafael Alburquerque, former Public Health and Environment Minister Bautista Rojas, former Attorney General Radhamés Jiménez and the president of the Chamber of Deputies, Rubén Maldonado, all members of the Political Committee of the PLD party. San Juan de la Maguana senator and organization secretary for the PLD Félix Bautista also attended, and former Superintendent of Banks Rafael Camilo, among others.

There are so far five men who have announced their quest for the presidential nomination of the Dominican Liberation Party. These are former Environment Minister Francisco Domínguez Brito, National District senator Reinaldo Pared; and former Minister of Interior and Police Carlos Amarante Baret.

ABC News features update on the story on Trump investments in Cap Cana
The US TV station, ABC News aired a news story covering the side of investors who lost big sums after having ploughed millions into the Trump Farallon Estates at Cap Cana, the would-be luxury development that had been planned by the local developers of Cap Cana and that was championed by then Apprentice-show star, today US President Donald J. Trump. ABC reminds readers that on the same day buildable lots in the cliff-top resort went on sale, dozens buyers bought out 95% of the development, snapping up more than US$350 million in property. There would have been condominium-hotel, a beach club, private villas, and a world class golf course, but all collapsed, reportedly due to the financial crash in 2008. Many investors lost their life savings.

ABC is following up the story now that after Trump reached the US Presidency, his son Eric Trump, the real estate developer, was back meeting with Cap Cana developers Ricardo and Fernando Hazoury at the property in February 2017. ABC recalled that in 2012, the Trump Organization had filed a lawsuit against the developers, accusing them of having “grossly underreported” the project’s sales figures to avoid having to pay the Trump company its share of the proceeds. “This was textbook fraud on a wide scale, involving millions of dollars,” the Trump lawsuit alleged.

ABC explains that unlike many of the original buyers – many of who saw their land lost to foreclosure – the Trumps had made US$12 million in licensing fees. Records show the legal claim was resolved in an undisclosed settlement.

Former US ambassador to the Dominican Republic, Wally Brewster, told ABC News that he wants to know if any of the president’s broad range of powers have become tools of leverage in the company’s dealings with the powerful Dominican family that is developing Cap Cana.

Brewster mentioned that the US government is still aggressively pursuing a slow-moving legal case that it brought against the project’s developer for more than US$12 million in US government loan guarantees issued by the Export-Import Bank of the United States but that were never repaid. The loans, bank officials told ABC News, were meant to help the Cap Cana developer to import US products.

Eryn Schornick, a lawyer with the watchdog group Global Witness told ABC News these are concerns inherent with having a US President whose family is doing extensive business overseas, as reported in ABC News.

“The primary concern I see with the potential of Mr. Trump’s family returning to the Dominican Republic is abuse of power,” said Schornick, who has done legal work in the Dominican. “The fact is, the Dominican Republic is a very small country. They’re in a place where doing business with [the family of] the President of the United States could influence the way in which any negotiations in foreign policy may happen.”

Another accident on Sosua-Cabarete road
Eight people were injured yesterday, Monday 11 June 2018, in yet another accident on the road between Sosúa and Cabarete in Puerto Plata province. The accident happened outside the Coconut Palms and Perla Marina almost in front of the entrance to the Bombita de Cabarete sector, when a public transport minibus on the route from Puerto Plata to Rio San Juan flipped over after one of its front tires blew out.

Dominican History Academy seminar on Puerto Plata
The Dominican History Academy has scheduled the seminar “Puerto Plata in the 19th Century: A window onto the World” from 9am to 4pm in the meeting room in the Casa de la Cultura in Puerto Plata for 23 June 2018.

The event is dedicated to Manuel Finke González. Those interested in participating should contact the Dominican History Academy on Tel 809 689-7907 and 809 682-4968. There will be transport available from Santo Domingo to Puerto Plata.